During last Friday's session, equities held on to modest gains on very low volume. Price/volume action continues to indicate a weakening uptrend, although we are still awaiting a follow-through day.

First, some general announcements. I am leaving on Monday for a much needed vacation and will return Tuesday November 17th. During this period, updates will be fairly limited, but I will do my best to get the standard round of charts published each day. However, understand that we are still in a correction (even with this "bounce") and sit within the 1020-1080 range so I expect things should be apathetic. In order to confirm a new intermediate trend, we need to see a decisive follow-through day with volume.

Prices continues to base after undergoing a harsh multi-week sell off. On the 15-minute chart, we can see the formation of a 10-day head and shoulders reversal pattern, with a neckline at 1070. This pattern carries a measuring target around 1100 (seen on the 60-minute chart).

Volume continues to decline as prices rally, and this really calls into question the health of this five session uptrend. Volume is not currently trading with the trend, and this is the type of price/volume action we see during market corrections. When the market displays these clear divergences, take it as a signal that the sideline is the best place to be.

As always, the long term trend. You can also Follow us on Twitter or Facebook, and sign up for our Portfolio Tilt updates by e-mail , delivered every morning.